Image reads: 2024 state of saas usage

2024 SaaS Trends – Usage

Confluence was the overall most used SaaS application in 2024; tool proliferation continues, but overall governance initiatives are starting to prove effective.

The global economic climate continues to be in a state of flux. Corporations continue to face a mix of financial pressures, resulting in tough decisions and greater consolidation.

Executives have been tasked with narrowing down tech stacks in an effort get leaner — a response to both cost pressures and a desire for better efficiency.

But some businesses argue that growing their number of existing application allows them to take advantage of cutting-edge solutions — like Gen AI — just coming to market.

This quarter, discover the top used SaaS applications across all departments and keep a lookout for upcoming installations in the coming months.

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SaaS Usage Trends 

At the department level, the average number of SaaS apps used by each team grew by 14% to an average of 73 SaaS apps between 2022 to 2023. This is a notable change from the 2021 to 2022 numbers, which came in at 41% average growth and 64 apps respectively.

While absent from these usage charts, AI applications are expected to make a strong debut as businesses develop their AI policies and strategies over the coming year. This is indicated by employees rapidly adopting AI tools outside of their companies' governance policies as shadow IT applications.

The tools departments rely on are constantly in flux. From changing market dynamics to evolving business strategies and consistent technological innovation, there are many reasons why software gets adopted, renewed, or retired.

But what SaaS applications have departments been enthusiastically embracing, and which ones have fallen out of favor over the last few years? Let's dive into the data and discover the trends.

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Average number of apps per team continues to grow; governance has slowed the rate

KEY TAKEAWAYS
  • Tool proliferation continues, but overall governance initiatives are starting to prove effective, with the average growth rate of app adoption falling from 41% from 2021 to 2022 down to just 14% from 2022 to 2023.
  • Operations as a department had the greatest increase in SaaS apps, increasing their average portfolio size from 74 to 87, despite having a lower growth percentage rate than IT, Sales, and Product teams. This is likely due to tool migration without ending prior contracts, or as a result of redundant tool usage.
  • Customer success had the lowest percentage of growth — 5% from 2022 to 2023 — with only 61 average apps.
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